Posts Tagged ‘Chinese Devaluation’

RBI governor Raghuram Rajan: “We will have no hesitation in using our reserves when appropriate to reduce volatility in the rupee.” Economic realities are economic realities and a currency war is a currency war, which is why, we suppose, the Indian government’s chief economic advisor Arvind Subramanian thinks the country might just have to hit back.

Will China decide to “beggar its neighbors”, the US and Europe? The only way that the US might counter the Chinese move, would be to revalue gold in Dollars; which is to say, the US would have to effect a corresponding devaluation of the Dollar against gold, to nullify the effect of the Chinese devaluation of the Yuan against gold.